Acuity Brands (NYSE: AYI) missed first quarter (ending November) estimates by 8% on in a report issued Jan. 9. I think the 15% drop in the stock is overdone but emblematic of investors’ fears regarding a slowdown in U.S. building. Management noted a marked drop in orders from small customers in November, primarily due to election jitters and partly due to a labor shortage for larger customers. Both of these issues seem to be transitory. Two brokerage firms upgraded the stock on Tuesday morning, most notably Robert Baird, which had previously been at neutral and believes the secular growth story is intact. Newly lowered estimates for 11% earnings growth in 2017 and 20% in 2018 look conservative.

Ambarella (NSDQ: AMBA) introduced a new chip for use in cars. Its software on a chip (SoC) product will be integrated into industry leader Gentex’s multi-camera electronic mirrors used for assisted driver assistance features like self-parking and surround view. The product was featured at the Consumer Electronics Show this month in Las Vegas.

Charles River Labs (NYSE: CRL) was upgraded to a buy from hold by research firm Evercore ISI. Analyst Ross Muken noted his upgrade was predicated on robust biopharma demand and the company’s unique positioning with early drug discovery services. Charles River will report earnings in early February.

Novartis (NYSE: NVS) I’ve had a few questions from subs who missed selling the NVS calls last week. Don’t fret! The stock is still acting well and it looks like you can still sell them for about $2.10. However sell them this week. These options expire January 20th and lose value very quickly as you get close to expiration.

PayPal (NSDQ: PYPL) stock was initiated with an Outperform at BMO Capital and a $47 price target.  Analyst Paulo Ribeiro commented, “In our view, the current price does not fully reflect PayPal’s exposure to a strong secular tailwind as payments shift toward electronic means, in particular online and mobile. We believe it is well-positioned to sustain mid-teens or higher organic revenue growth with modest margin expansion leading EPS growth that approximates 17% during each of the next three years.” Our $41 calls are currently in the money but I expect the stock to move higher.